New data shows a North/South divide widening in the rental market.
The data comes from property valuation firm Bricks&Logic, which estimates the rental value of more than 21 million addresses across England and Wales.
Since February, rents have fallen sharply in the North East, with areas like Scunthorpe and Kingston on Hull experiencing drops of around 3%.
As the map shows, declines also took place across the North of England. Formerly red-hot rental markets like Manchester are now showing rental price falls of up to 1.7%.
Travel south of Nottingham and it’s a very different story. All areas in the East of England and across the South showed positive rental growth.
Despite reports of tenants leaving the capital since the pandemic, London had some of the strongest rental growth anywhere in the country, especially in the outer South West. Kent and Essex areas close to the capital also saw big rises in rent.
South Wales was another rental hotspot over the last three months. Surprisingly, the strongest growth was found outside the major cities.
The regional divide in rental growth is quite a new development. A map of year-on-year rental growth to April 2023 shows London and surrounding areas performing strongly, but no clear difference between the North and the South.
The last three months’ data could just be a blip for the North, or it could be the first signs of a falling rental market. Agents in the North and elsewhere will want to keep an eye on the trend.
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